Gulf Today, Staff Reporter
Bayut, the UAE’s leading property portal, has released its Abu Dhabi property market reports for 2022. The data collected by Bayut revealed that sales prices of both affordable and luxury apartments for sale in the capital have continued to rise. When it comes to more spacious, private villas, luxury homes have become more expensive while affordable villas have become more competitively priced. In contrast, prices for rental apartments and villas have generally decreased across Abu Dhabi’s most popular districts, with the only notable exception seen for luxury villa rentals.
As per Bayut’s property market reports for 2022, the sales prices for villas have declined by up to 18%, while the cost of apartments has increased by up to 2.71% in the affordable segment. Prices for luxury properties have reported surges of up to 13% for both apartments and villas.
On the other hand, rental prices have declined by up to 9% for apartments, with villa rentals reporting increases of up to 12% in the affordable segment. Prices for luxury rentals have decreased by up to 15% for apartments and up to 29% for villas.
Prospective investors have preferred affordable suburbs like Al Reef and Al Ghadeer to buy apartments, whereas waterfront communities like Al Reem Island, Al Raha Beach, Yas Island and Saadiyat Island have attracted buyers interested in luxury units.
Those interested in buying competitively priced villas have gravitated towards Al Reef, whereas affluent communities like Saadiyat Island, Yas Island and Al Raha Gardens have been investment hotspots for high-income buyers.
Tenants on a budget have preferred established communities like Khalifa City A and Al Khalidiyah to rent apartments. Waterfront districts like Al Reem Island and Al Raha Beach have continued to be popular amongst those seeking luxury flats in Abu Dhabi.
Mohammed Bin Zayed City has been the most sought-after area to rent affordable villas in Abu Dhabi, whereas Al Mushrif has captured the interest of higher-income tenants.
Saadiyat Island has garnered the most consumer interest for luxury villas in Abu Dhabi:
The average price-per-square-foot for villas in Saadiyat Island has experienced an appreciation of 12.7%, increasing from Dhs 1,438 in 2021 to Dhs 1,620 in 2022, pointing towards a steady demand for waterfront properties.
Similarly, the price-per-square-foot for houses in Yas Island have increased by 6.1%, averaging at Dhs 1,144 in 2022.
In contrast, the average sales price-per-square-foot for houses in Al Raha Gardens have experienced a slight decrease of 0.49%, to stand at Dhs 834 in 2022.
As per the data collected by Bayut, Al Reef has been the most popular choice for affordable villas during 2022:
The average sales price-per-square-foot for houses in Al Reef witnessed an increase of 4.67% during 2022, rising from AED 675 in 2021 to AED 707 in 2022.
Additionally, price-conscious investors have favoured areas such as Khalifa City A, Hydra Village, Al Ghadeer and Baniyas to buy cheap houses in the capital. Among these areas, houses in Baniyas have reported a significant decrease of 18% in average price-per-square-foot. This price shift can be explained by a rise in the area’s low-priced inventory of properties, particularly in Bawabat Al Sharq.
In 2022, prospective investors have been drawn towards waterfront and island communities to buy upscale apartments in Abu Dhabi:
Al Reem Island has been the top choice for luxury apartment buyers in Abu Dhabi. The apartments in Al Reem Island have recorded a minor increase of up to 2% in price-per-square-foot, averaging at AED 1,011 in 2022.
Buyers have also preferred Al Raha Beach, Yas Island and Saadiyat Island for luxury apartments. These areas have recorded increases of up to 14% in average price-per-square-foot during 2022. Apartments in Saadiyat Island have reported the highest increase – 13.2% – which could be attributed to the price shift consequent to the increased inventory in Park View, Saadiyat Cultural District and Soho Square.
For affordable apartments in Abu Dhabi, buyers have mostly favoured suburban communities:
Al Reef has been the first choice for investors interested in buying flats in the budget category. The price-per-square-foot for apartments in Al Reef has increased by 2.71%, to average at AED 686 in 2022.
Al Ghadeer has also appealed to budget-conscious buyers during 2022. The average price-per-square-foot for flats in Al Ghadeer has increased marginally by less under 1%, averaging at Dhs 703.
Apartments in Baniyas have reported a 2.95% decrease in sales price-per-square-foot, reducing from Dhs 769 in 2021 to Dhs 746 in 2022.
Article originally published on gulftoday.ae